haha calvin really respect your calm and composed reply to all those who attack you... not many ppl have this kind of patience n persistence

kc, i must say that i am a beginner in investing with less than 10 yrs experience... partly due to my young age. before i joined i3 and read your posts I have no investment philosophy or backbone... always buying stocks based on rumors or based on so called analyst recommendations... This has cost me. in just less than 1 year I hv learnt to analyze stocks myself and start making good decisions myself after following your posts and reading more investment books. In fact This year alone my returns from stock market already exceed all my investment returns of all previous years combined ! So pls keep up your good posts and sharing here.

ICAP is probably not bound to any min equity exposure rules like most other funds. The up side of that is that more freedom and flexibility. The down side is that it leads to market timing by fund manager which may cause underperforamcne. For funds with min equity exposure, managers are forced to maintain a min allocation of equities, this reduces market timing and leaves the timing to investors themselves while manager focus on staying invested.

Posted by kcchongnz > Oct 21, 2013 11:48 AM | Report Abuse

Posted by houseofordos > Oct 21, 2013 11:24 AM | Report Abuse

If the fund's assets are marked to market then is 20% discount to NAV justified ? Dont really understand this close ended fund... because in most open ended fund NAV = unit price..

That is the difference between CEF and OEF. The assets of CEF is made up of cash and quoted shares mainly. Its share price depend on supply and demand, and not based on the share value (NAV).

Is 20% discount reasonable? You tell me.

I would say its not justified. Furthermore, if he s holding a lot of cash now. then the discount is further unjustified since volatility of the NAV is less... Maybe ICAP should just distribute a 20% dividend to even it out :)

That could also mean that at a discount of 20% to its NAV, icap is a good investment. Not because TTB is a good fund manager. Anyway, he has been proven to be just another ordinary fund manager for the last 5 years.

If the fund's assets are marked to market then is 20% discount to NAV justified ? Dont really understand this close ended fund... because in most open ended fund NAV = unit price..

alternatively, can download here http://www.my10000dollars.com/MS.pdf

go to bookos website... lots of free book to download there..

Yes..KC, that would be much appreciated... We need more of such discussion here rather than personal attacks and childish name calling I ve been seeing a lot lately in this forum.

Btw, I have read the book by Pat Dorsey on the “The 5 Rules for Successful Stock Investing". This is one of the best FA books I ve read and very comprehensive teaching basic valuation, financial statement analysis as well as examples on how to value companies in different industries...

If looking for a simpler method to find good companies, another good book that I believe KC has recommended before is the Little Book That beats the market by Joel Greenblatt. In this book, he explains 2 magic formulas to screen for superior stocks, EV/EBIT and ROIC.

I normally screen for good stocks using some fundamental scanners available online such as these
http://klse.neobie.net/quote.php
Fibon was actually discovered through screening for low PE, high ROE companies.

Also, go to Popular bookstore and look for Dynaquest book , Stock performance guide. This is a book which has all the 10 year historical information on most companies in Bursa including ROE, FCF, P/E and a background information about the company's business. Its like a bible for FA investors on Bursa...

hey Avacado, thanks... yup its clear now....

KC, just for discussion's sake.

No of shares = Share capital / Par value

My understanding on capital reduction is as follows :-

Lets say equity section of BS as follows:-
Share capital = 100,000
Accumulated losses = -10000
Par value = RM 1
No of shares = 100,000

With capital reduction, lets say par value adjusted to RM0.5 but 10,000 is used to wipe out losses. If we say that capita reduction wont change no of shares then where is the 10,000 to wipe out losses come from and what is the new share capital ?

KC, ok thanks for the explanation. So i guess the main purpose is mainly to unlock the value and allow it to pay dividends. Still not sure on what new par value will be though and how much cash distribution... Par value reduction is never positive in my mind with what I ve seen with MAS... Of course reason may be different for the latter...

Calvin & KC, I m curious why PMCorp would undertake capital reduction ? Why not just pay out a special dividend ? Normally I would expect them to do this to wipe out the accumulated losses and put them in better financial standing. But current par value is RM0.5, what is the new par value ? Honestly I ve not seen companies in Bursa with par value of RM0.3 or RM0.4. Closest is maybe RM0.2. Not sure if there is any rules on this, So if assuming new par value RM0.2, their cash on hand is only RM0.19, this is not enough for cash distribution to shareholder unless they borrow from bank or sell more assets.

Please educate me. Many thanks

been holding this counter for 2 yrs plus de.... losing patience...

Stock: [PMCORP]: PAN MALAYSIA CORPORATION BHD

houseofordos Oct 14, 2013 05:32 PM | Report Abuse

Based on statement of cashflow, I see impairment loss booked in company section of cashflow only but none at the group level

OBVIOULY U DONT KNOW NUT ABT GROUP ACCOUNT....

read d note on consolidation of accounts la... c wat is done to inter company balances whn preparing the group account

Yes I know nuts. I m not accountant btw, but already realized 50% gain on this counter which I m vey happy and thankful to KC and Calvin.... No point wasting time arguing cause I hv no idea what you re talking bout anyway....

Based on statement of cashflow, I see impairment loss booked in company section of cashflow only but none at the group level

Just looking at the cash/share here is already RM0.19, unless you are saying the investments are worth nothing, there is still a huge margin of safety here..,.

nightshade.. u bring up valid points, but how effective is this so called council.. from what I read, there is precedent, where Laos has ignored concerns from its neighbours and built an even bigger dam the Xayaburi dam (1950MW).... bottom line it all depends on how much Laos depends on its neighbours for aid and what it does to pleaes them...

i agree.. considering the state of Laos, I m sure the govt is desperate to get this power plant up in order to start selling the electricity and generating revenue.. hope there is no more delay on the project...

Some negative publicity on the upcoming dam construction project by MFCB in Laos is appearing. According to TheEdge Review, the Don Sahong dam will cause serious environmental repercussions in the Mekong river by preventing the migration of fish and affecting livelihood of fishermen.

a recession proof business... haha

An interesting example on how to value a company using EV/EBITDA... if only the analysis had been done earlier... this gem would have been found and wont be privatised so cheaply !

Posted by kcchongnz > Oct 10, 2013 10:52 AM | Report Abuse
.....
So what if there is talk of Digi buying over? What is Green Packet's bargaining power in the negotiation. Does it have any?


Gpacket has the spectrum. Digi will gain additional 20MHz spectrum bandwidth in the 2.6GHz range to allow it to offer LTE at more cost competitive rate and compete with Maxis and Celcom.

Posted by wcs0201 > Oct 3, 2013 12:12 PM | Report Abuse

PMCORP will privatise at 30sen by Dato Khoo

RUMOURS !!!


No way minority will accept 30sen.. way too low considering its assets havent been revalued for some time...

ooh.. down 10% today.. fast up fast down... again.. trading this stock has been profitable.. time to consider to re-enter if 80sen can hold...

KC, talking about risk-free investment, would you buy OGAWA at RM1.01 for a risk free return of 3.9% till privatised at RM1.05 ? I was just thinking of putting some spare cash into here... better than FD ma...

yup... do u thinkk the Rm1.95 offer is fair if its true ? Looking at its past history, earnings hasnt exactly been growing greatly, the offer price of RM1.95 gives CENBOND a P/E of about 12x which I think is fair

kc, this one could just be rumours, there is no official announcement on Bursa yet...

kc, what about redtone-wa... currently trading at 4% discount with more than 1 year to go to expiry...

Where did the rumour of Tan Sri Datuk Khoo privatising PM Corp at 25 Cts come from?. Someone proposed a higher price of 30 cts to take it private at one AGM.

This RM0.25 info came from Focus malaysia.. of course minority reject... he was going to use PMCORP cashpile to pay for the acquisition since cashpile was more than the 70mil he had to fork out to pay for the shares he did not own... haha

Posted by yowtp > Sep 29, 2013 10:34 PM | Report Abuse

Houseofordos, what do you think about the article! In your opinion, it's good or bad news for MUI group?
Thanks.

Article is more about KKP and the history of MUI group. Nothing really new... I do not know how ppl will perceive the article... who knows.. with this publicity, maybe ppl will dig in more and discover value in some of the shares... or stock may be sold down... Read the information posted here and in the magazine to judge your self.

haha... hoping for another myeg ? yup perhaps.. who can tell... but based on the info available now, there s not enough information or to justify the price.. all the best to all of us...

izoklse, agree with you... nothing new... kind of like a summary of Khoo Kay Peng and his companies' history

focus malaysia.... I read the full article...

yea i read that article... basically its more about the history about this khoo kay peng and MUI... nothing really damning about pmcorp... in fact it even mentions that khoo wanted to take pmc private in 2011 for 25sen... which tells you he knows the value of this company... furthermore.. pmcorp is one the few profitable companies owned by him

After further analysis, no doubt the growth here is may be explosive once the revenue from PEMANDU project start kicking in, but looking at its current EPS (assume annualized after 3Qs so far) will be about 2.1 sen (excluding its other operating income), the P/E is a whopping 45 times based on close price of RM0.975. Let say we take away net cash/share of RM0.11, the amount paid for business based on closing price last Fri is RM0.975-RM0.11 = RM0.865, the P/E is still very high at around 40 times...

The revenue/profit expected from Intelis is still not clear. How about its other current business,

Just giving another point of view here to caution myself... although I myself am holding this stock for some time... would like to hear what others have to say about this counter...

KC, thanks for clarification

Posted by calvintaneng > Sep 28, 2013 10:16 PM | Report Abuse

Yes houseofordos,you are right, MUI is the substantial shareholder of PM Corp while PM Corp has less share in MUI Bhd. PM Corp own MUI ICULS A. See MUI Annual Report of Year 2011: pp 50. Among top 30 see no. 3. PM Corp no.10. Mui Property (PM Corp own MUI Bhd indirectly through MUI PROPERTIES) no.14. United Pace & no.17 Jomuda (United Pace & Jomuda are both subsidiaries of PM Corp's Investment)

In the latest Annual Report of PM Corp, it is stated that MUI BHD owned 66.5% shares of PM Corp See pp 98. Early this year MUI Bhd bought over the remaining 4% of PNB's share through off market dealing - thus increasing MUI Bhd share in PM Corp to about 70%


Calvin, if based on purely asset play, would you invest in MUI directly rather than PMCORP ? It looks like most of the valuable properties are sitting in MUI balance sheet.

kcchongnz, there is some difference in my projection for PMCORP intrinsic value based on Graham net net.

1. The weighted no ordinary shares should be 708397 after taking share captial subtracting treasury shares.
2. The sale of Singapore leasehold land brought in ~RM38m, I adjusted investment and cash value to reflect that. Below is my computation.

Graham net-net BS value Wt Liq value Per share
Cash and cash equivalent 131950 100% 131950 0.19
Investment Properties 1137 100% 1137 0.00
Investments 65168 100% 65168 0.09
Inventories 18433 50% 9216.5 0.01
Trade Account Receivables 21475 75% 16106.25 0.02
Property, plant and equipment 48040 0% 0 0.00
Intangible assets/tax recoverable 58206 0% 0 0.00
Total assets 344409
Total liabilities 15471 100% 15471 0.02
Total equity 328938 0
Number of shares 708397 100000
Net tangible asset per share 0.46 0.29

So my value of RM0.29 is more optimistic from yours with target price 46% higher than closing price on Fri.

Hi Calvin, very interesting sharing you posted here http://www.jbhouseforsale.com/pan-malaysia-corporation-4081-an-overlooked-extremely-undervalued-stock-in-klse/

I would just like to clarify with in your article where you mentioned the following :-
PM CORP own MUI BERHAD Which Own these TWO JALAN AMPANG PROPERTIES. When The General Public gets to know The Value of PM CORP & MUI BERHAD through Asset Revaluation, Prices Will Come Alive!

I think its the other way round. Looking at analysis of shareholdings for PM CORP, MUI owns 20.9% of PMCORP while there is no mention of PMCORP as substantial shareholder in MUI. Please correct me if I m wrong...

what does Pemandu endorsement of Lucenxia mean ? is the project funded by private sector or govt ? whats the impact to the subsidiary's revenue ?

http://etp.pemandu.gov.my/INTELLIS-;_Home_Dialysis_System-@-Lucenxia_(M)_Sdn_Bhd.aspx

Lucenxia will be developing INTELLIS, Intelligent Automated Peritoneal Dialysis (APD) cycler designed for Chronic Kidney Disease (CKD). Introduce for patients to be administered at their homes and customised for the Malaysian/Asian home environment. The treatment adopts the APD home treatment modality where patients are treated during their sleep.


Investment by 2020 (million)RM494.4
GNI Impact by 2020 (million)RM197.5
Jobs created by 2020 113

INTELLIS is extremely patient friendly with many new and unique features which not only automates the therapy process, but also makes it easier and more convenient for patient to use. Patients will enjoy more day-time mobility, contributing to better productivity and quality of life of both patient and their care-givers. The treatment package will be affordable and accessible to more patients.

With this home dialysis program, it will relieve pressures on the scarce in-centre resources to meet the demands of the rapidly growing number of CKD patients. Patients will have access to the program at all areas of the country, as long as there is mobile telecommunication coverage. Malaysia will be realizing a truly innovative medical device that is home grown, whilst having the potential to share with the rest of the world.

wah.. all of sudden this thread so many supporter...

this one should have buy and hold last time when i went in at 45sen.. but hand itchy.. in and out like 4-5 times de with very nice profits... my cost is around RM0.7 currently

might have some material annoucement on PN17 exit status coming soon... one of my most profitable stocks !

looking good today.,,, recession proof stock... haha....pls break RM0.81

here we go...

haha KCLoh cheers...

I made full use of KCChong's template to do valuation on numerous companies... found many gems this way... thanks to KCChong for his sharing...

hahaha... yum yum....

based on Focus malaysia, OjiPaper is believed to be going to make a privatisation offer for Cenbond based on Price/Book multiple of 1.5. Based on NTA/share of RM1.3, this would translate to a TP of RM 1.95...

kc, good point, should i just deduct minority interest from equity section ?
disclaimer? aiya who am I ? its not like I have so much influence... hahaha...

PRKcorp is an asset rich company, applying a graham net net valuation method as a most conservative way of valuation as described by KC still presents a decent margin of safety

Graham net-net valuation of Prkcorp

Graham net-net BS value Wt Liq value Per share
Cash and cash equivalent 208122 100% 208122 2.08
Property development costs 132434 100% 132434 1.32
Land held for development 14658 100% 14658 0.15
Investment Properties 5107 100% 5107 0.05
*Other investments 76231 80% 60984.8 0.61
Inventories 6410 50% 3205 0.03
Trade Account Receivables 129945 75% 97458.75 0.97
Property, plant and equipment 85483 0% 0 0.00
Port facilities 86320 0% 0 0.00
Intangible assets/tax recoverable 25267 0% 0 0.00
Total assets 769977
Total liabilities 189876 100% 189876 1.90
Total equity 580101 0
Number of shares 100000 100000
Net tangible asset per share 5.80 3.32

*These are available for sale financial assets (quoted shares in Malaysia)

Closing price 2.87
MOS 13.58%